Instructions Note: This problem is for the 2020 tax year. Prepare the 2020 fiduciary income tax return (Form 1041) for the Green Trust. In addition, determine the amount and character of the income and expense items that each beneficiary must report for the year, and prepare a Schedule K-1 for Marcus White. The trust is not subject to the AMT. The year's activities of the trust include the following. Dividend income, all qualified U.S. stocks Taxable interest income Tax-exempt interest income Net long-term capital gain, incurred 11/1 Trustee's fees $10,000 50,000 20,000 25,000 6,000 Under the terms of the trust instrument, cost recovery, net capital gains and losses, and fiduciary fees are allocable to corpus. The trustee is required to distribute $25,000 to Marcus every year. For the year, the trustee distributed $40,000 to Marcus and $40,000 to Marcus's sister, Ellen Hayes. No other distributions were made. In computing DNI, the trustee properly assigned all of the deductible fiduciary's fees to the taxable interest income. The trustee paid $4,000 in estimated taxes for the year on behalf of the trust. Any resulting refund is to be credited to the next tax year. The exempt income was not derived from private activity bonds. The trust was created on December 14, 1953. It is not subject to any recapture taxes, nor can it claim any tax credits. None of its income was derived under a personal services contract. The trust has no economic interest in any foreign trust. Its Federal identification number is 11-1111122. The trustee, Wisconsin State National Bank, is located at 3100 East Wisconsin Avenue, Milwaukee, WI 53201. Marcus lives at 9880 East North Avenue, Shorewood, WI 53211. His Social Security number is 123-45-6788. Ellen lives at 6772 East Oklahoma Avenue, Milwaukee, WI 53204. Her Social Security number is 987-65-4321. Required: Prepare the 2020 fiduciary income tax return (Form 1041) for the Green Trust. In addition, determine the amount and character of the income and expense items that each beneficiary must report for the year, and prepare a Schedule K-1 for Marcus White. If an amount box does not require an entry or the answer is zero, enter "0". Enter all amounts as positive numbers, unless otherwise instructed. If required, round final answers to the nearest dollar. Make realistic assumptions about any missing data. Note: You are not required to complete Schedule D or the Schedule D Tax Worksheet. Form 1041 Prepare the 2020 fiduciary income tax return (Form 1041) for the Green Trust. Note: The net investment income threshold for 2020 is s $12,950. Form 1041 Department of the Treasury-Internal Revenue Service U.S. Income Tax Return for Estates and Trusts Go to www.irs.gov/Form1041 for instructions and the latest information. For calendar year 2020 or fiscal year beginning A Check all that apply: Decedent's estate Simple trust D Complex trust Qualified disability trust ESBT (5 portion only) Grantor type trust Bankruptcy estate-Ch. 7 Bankruptcy estate-Ch. 11. Pooled Income fund B Number of Schs K-1 F C attached (see instructions) 2 Green Trust Wisconsin State National Bank 3100 East Wisconsin Avenue Milwaukee, WI 53201 Check Initial return Final return applicable boxes: Change in trust's name Change in fiduciary and ending C 2020 OMB No. 1545-0092 20 Employer identification number 11-1111122 D Date entity created E Amended return Change in fiduciary's name Trust TIN 12/14/1953 Nonexempt charitable and split- interest trusts, check applicable box(es). See instr Described in sec. 4947(a)(1). Check here if not a private foundation O Described In Sec. 4947(a) (2) Net operating loss carryback Change in fiduciary's address Check here if the estate or filing trust made a section 645 election....... I Interest income 2a Total ordinary dividends 1 2a Form 1041 b Qualified dividends allocable to: (1) Beneficiaries (2) Estate or trust, Income 3 Business income or (loss). Attach Schedule C (Form 1040) 4 Capital gain or (loss). Attach Schedule D (Form 1041). 3 5 Rents, royalties, partnerships, other estates and trusts, etc. Attach Schedule E (Form 1040). 6 Farm income or (loss). Attach Schedule F (Form 1040). 7 Ordinary gain or (loss). Attach Form 4797. 8 Other income. List type and amount... 9 Total income. Combine lines 1, 2a, and 3 through 8 10 Interest. Check if Form 4952 is attached ... 11 Taxes.... 12 Fiduciary fees. If only a portion is deductible under section 67(e), see instr 4 5 6 7 8 9 10 11 12 13 Charitable deduction (from Schedule A, line 7)......... 13 14 Attorney, accountant, and return preparer fees. If only a portion is deductible under section 67(e), see instructions..... 14 15a Other deductions (attach schedule). See instructions for deductions allowable under section 67(e). b Net operating loss deduction. See instructions. 15a 15b Deduc- tions 16 Add lines 10 through 15b. 16 17 Adjusted total income or (loss). Subtract line 16 from line 9. 17 18 Income distribution deduction (from Schedule B, line 15). Attach Schedules K-1 (Form 1041).... 18 19 Estate tax deduction including certain generation-skipping taxes (attach computation) 19 Form 1041 20 Qualified business income deduction. Attach Form 8995 or 8995-A 21 Exemption..... 22 Add lines 18 through 211 23 Taxable income. Subtract line 22 from line 17. If a loss, see instructions. 24 Total tax (from Schedule G, Part I, Eine 9). 25 2020 net 965 tax liability paid from Form 965-A, Part 11, column (k), line 4. Total payments. (from Schedule G, Part II, line 19). Tax and 26 Payments 27 Estimated tax penalty. See instructions.. 28 Tax due. If line 26 is smaller than the total of lines 24, 25, and 27, enter amount owed. 20 20 21 " 22 23 24 25 26 27 28 29 Overpayment. If line 26 is larger than the total of lines 24, 25, and 27, enter amount overpaid 30 Amount of line 29 to be: a Credited to 2021 29 ;b Refunded... 30 Sign Here Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Signature of fiduciary or officer Date representing fiduciary Paid Print/Type preparer's name Preparer's signature Self-Prepared Preparer Firm's name Use Only Firm's address EIN of fiduciary if a financial institution Date May the IRS discuss this return with the preparer shown below? See Instr Yes No Check if self- employed PTIN Firm's EIN Phone no. Form 1041 (2020) Schedule A 11-1111122 Green Trust Charitable Deduction. Don't complete for a simple trust or a pooled income fund. 1 Amounts paid or permanently set aside for charitable purposes from gross income. See instructions.... 2 Tax-exempt income allocable to charitable contributions. See instructions. 3 Subtract line 2 from line 1. I 2 3 5 4 Capital gains for the tax year allocated to corpus and paid or permanently set aside for charitable purposes. Add lines 3 and 4... 4 5 6 Section 1202 exclusion allocable to capital gains paid or permanently set aside for charitable purposes. See instructions... 6 7 Charitable deduction. Subtract line 6 from line 5. Enter here and on page 1, line 13. Schedule B Income Distribution Deduction 1 Adjusted total income. See instructions.. 2 Adjusted tax-exempt interest... 2 3 Total net gain from Schedule D (Form 1041), line 19, column (1). See instructions 3 4 Enter amount from Schedule A, line 4 (minus any allocable section 1202 exclusion). 4 5 Capital gains for the tax year included on Schedule A, line 1. See instructions.. 5 6 Enter any gain from page 1, line 4, as a negative number. If page 1, line 4, is a loss, enter the loss as a positive number.. 6 7 Distributable net income. Combine lines 1 through 6. If zero or less, enter-0- 7 B If a complex trust, enter accounting income for the tax year as determined under the governing instrument and applicable local law- 8 9 Income required to be distributed currently. 9 7 1 Page 2 Form 1041 9 the governing instrument and applicable local law Income required to be distributed currently...... 10 Other amounts paid, credited, or otherwise required to be distributed.... 11 Total distributions. Add lines 9 and 10. If greater than line 8, see instructions.. 12 Enter the amount of tax-exempt income included on line 11 13 Tentative income distribution deduction. Subtract line 12 from line 11. 14 Tentative income distribution deduction. Subtract line 2 from line 7. If zero or less, enter-0-1 15 Income distribution deduction. Enter the smaller of line 13 or line 14 here and on page 1, line 18. Schedule G Tax Computation and Payments (see instructions) Part I - Tax Computation 1 Tax: a Tax on taxable income. See instructions. b Tax on lump-sum distributions. Attach Form 4972, la 1b c Alternative minimum tax (from Schedule I (Form 1041), line 54). d Total. Add lines 1a through 1c. 1c 1d 2a Foreign tax credit. Attach Form 1116. 20 b General business credit. Attach Form 3800 c Credit for prior year minimum tax. Attach Form 8801 d Bond credits. Attach Form 8912 e Total credits. Add lines 2a through 2d 2b 20 2d 2e 9 10 11 12 13 14 15 d Bond credits. Attach Form 8912. e Total credits. Add lines 2a through 2d. 3 Subtract line 2e from line 1d. If zero or less, enter -0-.. 2d 20 3 4 Tax on the ESBT portion of the trust (from ESBT Tax Worksheet, line 17). See Instructions. 4 5 Net investment income tax from Form 8960, line 21..... 5 6 Recapture taxes. Check if from: Form 4255 Form 8611 6 7 8 Other taxes and amounts due... 8 7 Household employment taxes. Attach Schedule H (Form 1040) 9 Total tax. Add lines 3 through 8. Enter here and on page 1, line 24 Part II Payments 10 2020 estimated tax payments and amount applied from 2019 return.. 11 Estimated tax payments allocated to beneficiaries (from Form 1041-T) 12 Subtract line 11 from line 10....... 13 Tax paid with Form 7004. See instructions.. 14 15 Federal income tax withheld. If any is from Form(s) 1099, check here O 2020 net 965 tax liability from Form 965-A, Part 1, column (f), line 4. 16 Other payments: a Form 2439 b Form 4136 Total. 17 Refundable credit for qualified sick and family leave. Attach Schedule H (Form 1040) 18 Deferral. If filing Schedule H (Form 1040), see instructions for amount to enter 19 Total payments. Add lines 12 through 15 and 16c through 18. Enter here and on page 1, line 26 9 10 11 12 13 14 15 16 17 18 19